KLA reported strong revenue growth, profitability, and cash flow for 2024, with notable achievements in advanced packaging and services. However, the company faces challenges due to U.S. export controls impacting China revenue and the completion of flat panel business shipments. Despite these challenges, KLA provided solid guidance for 2025, demonstrating resilience and market leadership.

Company Guidance

During the KLA Corporation December Quarter 2024 Earnings Conference Call, the company provided guidance for the fiscal year 2025, highlighting several key metrics. Revenue for the December quarter reached $3.08 billion, surpassing the midpoint of their guidance, and non-GAAP diluted EPS was $8.20 with a GAAP diluted EPS of $6.16. The company's gross margin was reported at 61.7%, and operating expenses totaled $596 million, comprising $342 million in R&D and $254 million in SG&A. KLA's free cash flow for the quarter was $757 million, with a free cash flow margin of 31%. Looking ahead, KLA expects the WFE market to grow by a mid-single-digit percentage in 2025, driven by investments in leading-edge logic and high-bandwidth memory, despite a $500 million revenue impact from recent export controls in China. Their March quarter guidance includes a total revenue forecast of $3 billion, plus or minus $150 million, and a non-GAAP gross margin of 62%, plus or minus 1 percentage point. Throughout 2025, KLA plans to maintain significant product development investments to support anticipated revenue growth, with operating expenses projected to increase by approximately $15 million incrementally per quarter.

Record Revenue and Market Growth

KLA's 2024 revenue grew 12% to a record $10.85 billion. Process control revenue grew over 12%, indicating increased market share, while the services business grew 15% to $2.5 billion.

Strong Profitability and Cash Flow

KLA maintained industry-leading gross and operating margins at 61% and 41%, respectively. The company grew free cash flow to $3.4 billion and returned $2.9 billion to shareholders through dividends and share buybacks.

Advanced Packaging Growth

KLA's advanced packaging revenue grew to approximately $500 million in 2024 and is expected to exceed $800 million in 2025, up from the previous estimate of $750 million.

Services Business Milestone

KLA's service business grew to $667 million in the December quarter, marking 50 consecutive quarters of growth, with an 18% year-over-year increase.

Solid Guidance for 2025

Total revenue for the March quarter is expected to be $3 billion, up 27% year-over-year at the midpoint. Non-GAAP gross margin is forecasted to be 62%, and non-GAAP diluted EPS guidance is $8.05 plus or minus $0.60.

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KLA (IT:1KLAC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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IT:1KLAC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 30, 2018	2018 (Q4)	- / 2.15	1.589	35.37% (+0.56)	―	―
Oct 29, 2018	2019 (Q1)	- / 2.38	1.744	36.67% (+0.64)	―	―
Jan 29, 2019	2019 (Q2)	- / 2.36	1.908	23.86% (+0.46)	―	―
May 06, 2019	2019 (Q3)	- / 1.74	1.957	-10.89% (-0.21)	―	―
Aug 05, 2019	2019 (Q4)	- / 1.72	2.151	-19.82% (-0.43)	―	―
Oct 30, 2019	2020 (Q1)	- / 2.40	2.383	0.81% (+0.02)	―	―
Feb 04, 2020	2020 (Q2)	- / 2.58	2.364	9.02% (+0.21)	―	―
May 05, 2020	2020 (Q3)	- / 2.39	1.744	37.22% (+0.65)	―	―
Aug 03, 2020	2020 (Q4)	- / 2.64	1.724	53.37% (+0.92)	―	―
Oct 28, 2020	2021 (Q1)	- / 2.94	2.402	22.18% (+0.53)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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IT:1KLAC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 30, 2025	€703.10	€734.90	+4.52%
Oct 30, 2024	€631.23	€608.19	-3.65%
Jul 24, 2024	€709.41	€701.56	-1.11%
Apr 25, 2024	€612.27	€653.33	+6.71%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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